This week of June-quarter earnings results ends with Friday morning’s reports from, among others, American Express, Honeywell and Schlumberger. A relatively small number of reports continued the trend of most companies beating estimates.
One of the stars of Thursday afternoon’s earnings reports was Snap. The company reported revenue up 91% year over year and 16% better than analysts’ estimate. Here are more comments on ratings and price target changes.
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No earnings reports are due out Friday afternoon, as usual, and we already have previewed three companies reporting results Monday morning: Alliance Resource Partners, Lockheed Martin and Otis Worldwide.
Here’s a look at one company that will be reporting results after markets close on Monday and four more due to report results before Tuesday’s opening bell.
Tesla
Shares of electric vehicle maker Tesla Inc. (NASDAQ: TSLA) have doubled in value over the past 12 months, even though the shares trade down almost 10% for the year to date. The stock reached an all-time high above $900 in late January, right in step with the first burst of giant gains for meme stocks like AMC and GameStop.
The company already has released delivery data for the second quarter, but investors are going to want to hear about how chip shortages will affect deliveries in the second half of the year and how Tesla expects to perform in the increasingly competitive EV market. The company reports second-quarter results after markets close Monday.
There are 31 surveyed analysts covering the stock, and their ratings are definitely mixed. An equal number (12) rate the shares a Buy or Strong Buy and at Hold. At a recent price of around $639.20, the upside potential based on a median price target of $701.50 is 9.7%. At the high target of $1,200, the potential upside is nearly 88%.
Analysts expect Tesla to report second-quarter revenue of $11.4 billion, up about 8.8% sequentially and 89% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.98, up about 5.4% sequentially and 122.7% year over year. For the full year, the company is expected to report EPS of $4.54, up 103% year over year, on a revenue increase of about 58% to $49.11 billion.
Tesla trades at a multiple of 144.4 times to expected 2021 EPS, 99.4 times estimated 2022 earnings and 81 times estimated 2023 earnings. The stock’s 52-week range is $273.00 to $900.40. The company does not pay a dividend.
24/7 Wall St.General Electric
General Electric Co. (NYSE: GE) reports second-quarter results first thing Tuesday. The stock has posted a share price gain of nearly 82% over the past 12 months, including a gain of about 18.4% for the year to date. Like many other industrial sector stocks, GE’s stock price is weakening on fears of another rise in COVID-19 infections. As a group, industrial conglomerates are trading about 6.5% lower than the S&P 500 index.
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Analysts are upbeat on the stock, with 13 Buy or Strong Buy ratings from 20 brokerages covering the stock. The other seven have a Hold rating. At a price of around $12.80, the stock’s potential gain based on a median price target of $15.35 is nearly 20%. At the high target of $18, the upside potential is more than 40%.
GE’s second-quarter revenue is expected to total $17.96 billion, up 4.9% sequentially and 1.2% year over year. Adjusted EPS are expected to be flat with first-quarter EPS of $0.03, far better than a $0.15 loss per share in the second quarter of 2020. For the full year, EPS is forecast at $0.25, up nearly 2,400% from EPS of $0.01 last year. Revenue is expected to slip by about 3.3% to $76.96 in 2021.
GE stock trades at a multiple of 52.6 times expected 2021 EPS, 25.8 times estimated 2022 earnings and 17.8 times estimated 2023 earnings. The stock’s 52-week range is $5.93 to $14.42. GE pays an annual dividend of $0.04 (yield of 0.31%).
Raytheon
Defense contractor Raytheon Technologies Corp. (NYSE: RTX) has seen its share price grow by about 39% over the past 12 months, including a gain of nearly 22% since the beginning of this year. Since the merger with United Technologies, the combined company has become the nation’s second-largest defense contractor, with about $42 billion of its $65 billion in 2020 revenue (65%) down to U.S. defense spending.
Of 21 analysts covering the stock, 16 rate the shares at Buy, and five have given the stock a Strong Buy rating. The other five recommend holding the stock. At a price of around $86.20, the upside potential based on a median price target of $97 is about 12.5%. At the high target of $108, upside potential rises to more than 25%.
Second-quarter revenue is forecast to increase by 3.7% sequentially to $15.81 billion. The year-over-year increase would be about 12.4%. Adjusted EPS are expected to rise by three cents sequentially to $0.93 and to more than double from the year-ago level of $0.40. For the full year, analysts are looking for EPS of $3.82, which would be 9.3% higher year over year, on revenue of $65.42 billion, up about 3.1%.
Raytheon stock trades at a multiple of 22.6 times expected 2021 EPS, 17.5 times estimated 2022 earnings and 14.2 times estimated 2023 estimates. The stock’s 52-week range is $51.92 to $89.98. The company pays an annual dividend of $2.04 (yield of 2.36%).
3M
Dow Jones industrial average component 3M Co. (NYSE: MMM) also will report second-quarter results before Tuesday’s opening bell. Over the past 12 months, the shares have increased by more than 30%, and the stock is up more than 16% for the year to date. Despite this recent solid performance, there are several headwinds for 3M: rising raw materials costs, higher logistics expenses and the global automotive chip shortage, which could reduce demand from automakers for 3M’s sales to the industry.
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Analyst sentiment is mixed, with 12 of 19 rating the shares a Hold and only three assigning a Buy or Strong Buy rating. At a per-share price of around $200, the stock trades right at its median price target. At the high target of $237, upside potential is 18.5%.
The consensus revenue estimate for the second quarter is $8.59 billion, down nearly 3% sequentially and up nearly 20% year over year. Adjusted EPS are forecast at $2.28, a sequential decline of nearly 18% but an increase of 28% year over year. For the full year, analysts are looking for EPS to rise by 12.7% to $9.85 on a revenue increase of 8.4% to $34.88 billion.
3M stock trades at a multiple of 17.2 times expected 2021 EPS, 16.0 times estimated 2022 earnings and 15.1 times estimated 2023 earnings. The stock’s 52-week range is $148.80 to $208.95, and 3M pays an annual dividend of $5.92 (yield of 2.95%).
24/7 Wall St.UPS
United Parcel Service Inc. (NYSE: UPS) has seen its share price improve by nearly 83% over the past 12 months, thanks to a spike following last year’s second-quarter earnings report and another spike following the first-quarter 2021 earnings release. For the year to date, UPS shares are up more than 27%. As concerns spread regarding an outbreak of the Delta variant of COVID-19, UPS and its chief competitor, FedEx, stand to benefit from another spike in demand for delivery services. The company is expected to report second-quarter results Tuesday morning.
More than half of analysts covering the stock (17 of 29) rate the shares a Buy or Strong Buy, while nine more have Hold ratings. At around $211.90 per share, the upside potential based on a median price target of $219 is about 3.4%. At the high price target of $261, upside potential rises to 23%.
Revenue expectations for the quarter are up about 1.1% sequentially to $23.17 billion, an increase of 13.2% year over year. Adjusted EPS is expected to rise by four cents sequentially to $2.81. The anticipated year-over-year increase is almost 32%. For the full year, analysts forecast EPS of $10.98, up 33%, on a revenue boost of 11% to $93.93 billion.
UPS stock trades at a multiple of 19.4 times expected 2021 EPS, 18.5 times estimated 2022 earnings and 17.0 times estimated 2023 estimates. The stock’s 52-week range is $117.54 to $219.59. UPS pays an annual dividend of $4.08 (yield of 1.92%).
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